Taibbi said though private equity firms have spawned some success stories, the industry's fundamental business model promotes layoffs and even company failure. The industry's proponents argue that private equity firms make companies more efficient.

"When you take over these companies, you have all these tools at your disposal that allow you to extract value from the company without the company succeeding," Taibbi said, expanding on hisrecent Rolling Stone article bashing Republican presidential nominee Mitt Romney and his roots in private equity. "You can force them to take out a bank loan and pay you a dividend. There's all these different things you can do. You can succeed in a private equity deal without turning a company around."

Taibbi said that private equity deals saddle companies with crippling debt and management fees, which buy only "the privilege" of having "Mitt Romney tell you where the costs have to be cut and whom you have to fire."

Taibbi said that Mitt Romney's fundamental pitch to voters is misleading. "He's pitched himself as a guy who is going to turn around America because that's what he does, is turn around companies. But that's not really true," Taibbi said.

Ultimately, Taibbi said, Romney's latest takeover bid will fail. "I think people are going to have a hard time getting around someone who fires people for a living and wants to get rid of Medicare," Taibbi said. "I don't think it's going to carry them to victory."

ALSO ON HUFFPOST:

Matt Taibbi On HuffPost Live: 'Private Equity Companies Do Not Exist To Turn Around Companies'

Romney&#039;s Bain Claims Don&#039;t Hold Up

Romney&#039;s Bain Claims Don&#039;t Hold Up

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SEC Filings List Romney As 'Chief Executive Officer'

According to the <em><a href="http://www.boston.com/news/politics/articles/2012/07/12/government_documents_indicate_mitt_romney_continued_at_bain_after_date_when_he_says_he_left/" target="_hplink"><em>Boston Globe</em></a></em>, Securites and Exchange Commission documents filed by Bain Capital after February 1999 list Romney as the private equity firm's "stole stockholder, chairman of the board, chief executive officer, and president."